The financial strength rating of Lloyd’s has been upgraded by Standard & Poors, the international ratings agency.

Lloyd’s said S&P has revised its FSR to “AA–”, outlook stable, from “A+”, outlook stable.

It said the rating upgrade reflects the improvement in Lloyd’s balance sheet strength, which S&P has assessed to be “excellent”, as well as Lloyd’s very strong capital and solvency positions, with profitability in underwriting and investments and strong premium growth evidenced in Lloyd’s 2023 half-year results published in September.

In the update, S&P highlight the corrective underwriting actions taken by Lloyd’s in recent years — focused on robust underwriting discipline through better oversight of syndicates — as a key reason for Lloyd’s improved performance.

Burkhard Keese, Lloyd’s CFO, said: “This latest upgrade reinforces Lloyd’s financial strength and resilience, and is a welcome testament to the progress made in recent years to improve performance and strengthen Lloyd’s balance sheet.

“Financial strength ratings are vital indicators to our customers, our market and our investors. This upgrade provides a renewed optimism that we will continue on our positive financial trajectory and deliver a strong financial outlook for 2023.”

Lloyd’s reported profit before tax of £3.9 billion for half-year 2023 (HY 2022: loss of £1.8 billion) and gross written premium of £29.3 billion (HY 2022: £24.0 billion).